The Vanguard Small-Cap Value ETF (VBR) and the iShares Russell 2000 Value ETF (IWN) are popular choices for U.S. small-cap value investors. VBR has a lower expense ratio of 0.07% compared to IWN’s 0.24%, and it offers a higher dividend yield of 2.0% versus 1.6% for IWN. However, IWN has broader diversification with 1,423 holdings, while VBR holds 840 stocks. IWN tracks the Russell 2000 Value Index, while VBR focuses on different sectors like Industrials and Financial Services. Both funds have similar long-term performance, but IWN has a slight edge in recent one-year returns.
Overall, VBR is more cost-effective and offers higher dividend income, while IWN provides broader diversification and tracks the Russell 2000 Value Index. Investors looking for low fees and higher dividends may prefer VBR, while those seeking specific index tracking and more diversification may lean towards IWN. It’s essential to consider factors like expense ratios, dividend yields, holdings, and sector tilts when deciding between these two value ETFs.
Read more at Yahoo Finance: Does Vanguard’s Low Fee Beat iShares’ Broader Diversification?
